UK Employers Ignore Group Income Protection

The latest report published by Group Risk Development, a body that promotes corporate group protection benefits, showed that only 6% or 1.77 million of employees in the United Kingdom are covered by group income protection insurance (GIP).

The remaining 94% or 27.21 million workers do not have this type of cover.

The same report suggests that group income protection can save UK government an average of £4 billion. Thus, it is in the government's best interest to work with employers and promote introduction of group income protection among them, says Mrs. Katharine Moxham, Grid spokeswoman.

One of the ways to encourage more employers to invest in GIP, says Mrs. Moxham, is increase national insurance (NI) contributions for those companies that do not offer group income protection for their workers.

This is expected to help British government reduce protection gap, delivering benefit savings, without any cuts planned by Chancellor for the next spending review.